Goldman Sachs Reiterates Buy Rating on Merck & Company with $99 Price Target

Goldman Sachs reiterated a Buy rating on Merck & Company with a price target of $99.00. The company's shares opened at $76.00. Asad Haider from Goldman Sachs covered Healthcare stocks, including Johnson & Johnson and Pfizer. Merck & Company reported a quarterly revenue of $15.53 billion and a net profit of $5.08 billion. Corporate insider sentiment is negative, with 24 insiders selling shares.

Goldman Sachs has reiterated a Buy rating on Merck & Company (MRK) with a price target of $99.00, as the company's shares opened at $76.00 on 06/05/2025. The investment bank's analyst, Asad Haider, who covers healthcare stocks including Johnson & Johnson and Pfizer, highlighted Merck's strong Q1 results and the company's strategic initiatives.

Merck reported a quarterly revenue of $15.53 billion and a net profit of $5.08 billion for the period ending March 31, 2025. The results exceeded analysts' expectations, with the company's oncology division, particularly Keytruda, driving significant growth. Despite a recent decline in stock price due to concerns over Keytruda's potential loss of exclusivity (LOE) after 2028, Merck has been actively expanding its pipeline in oncology and immunology [1].

One of the key strategic moves by Merck is its reported interest in acquiring Swiss biotech MoonLake Immunotherapeutics (MLTX). The Financial Times reported that Merck had submitted a non-binding offer for MoonLake earlier this year, valued at more than $3 billion. The deal, if successful, would help Merck diversify its revenue base and reduce dependence on Keytruda [2].

In addition to the potential acquisition, Merck has been exploring licensing deals with Chinese biotechs to bolster its pipeline. In late 2024, the company struck multi-billion-dollar deals with Hansoh Pharma, LaNova Medicines, and Hengrui Pharma, adding investigational drugs to its portfolio [1].

The corporate insider sentiment is negative, with 24 insiders selling shares, potentially indicating a cautious outlook among management. However, the strong Q1 results and strategic initiatives suggest that Merck remains a solid investment option for those seeking exposure to the healthcare sector.

References:
[1] https://stockanalysis.com/stocks/mrk/
[2] https://www.nasdaq.com/articles/mltx-stock-gains-18-merck-reportedly-eyes-buyout